Abrdn will manage a portfolio of 3,300 rental homes in Japan as part of a mandate for PGGM, and has hired a newly created head of Japan real estate position, an abrdn spokesperson confirmed.
The rental homes will be mostly located in Greater Tokyo, with some in Osaka and Nagoya, the spokesperson said, without providing the size of the mandate and when the mandate was issued.
Abrdn managed £369 billion ($466.6 billion) on behalf of clients as of June 30. PGGM managed pension assets worth €243 billion ($262.1 billion) as of March 30 for different pension funds, most notably the Pensioenfonds Zorg en Welzijn, the pension fund for healthcare workers headquartered in Zeist, Netherlands.
The fund manager also announced in a statement on Oct. 8 that it will be expanding its real estate investment business in Japan with the appointment of Harumi Kadono as its head of Japan real estate, a newly created position.
The abrdn Japan office currently has 30 employees across asset classes, and the firm is looking to expand the real estate team “in due course,” the spokesperson said.
“This expansion underscores our commitment to enhancing our real estate capabilities globally and across diverse segments. We are dedicated to building up our team in Japan and throughout the region, aiming to capitalize on these investment opportunities,” Global Head of Real Estate Anne Breen said in the statement.
“Amidst evolving policy and economic landscapes, the Asia Pacific market presents a rich tapestry of investment opportunities. Japan's residential sector, in particular, stands out due to its robust occupier demand and defensive attributes, continuing to draw significant capital from global investors,” she said.
Global real estate stands to gain from the lower interest rate environment, and the Japan residential market is further supported by the strong fundamentals of the Japanese economy and substantial local demand, the statement said.
